SEC Rejects Shiba Inu, Dogecoin, TRUMP, Meme coins as Securities, Compares Them to Trading Cards ⋆ ZyCrypto
The post SEC Rejects Shiba Inu, Dogecoin, TRUMP, Meme coins as Securities, Compares Them to Trading Cards ⋆ ZyCrypto appeared on BitcoinEthereumNews.com.
Advertisement     The U.S. Securities and Exchange (SEC) Commission, on February 27, under the Division of Corporate Finance, announced that meme coins are not securities, claiming that they don’t have any underlying value or function. Caroline Crenshaw, SEC Commissioner and Democrat, disagreed with the conclusion, claiming that the agency is overstepping its jurisdiction and should not exclude meme coins from SEC oversight. Crenshaw further argues that the SEC has not provided an adequate definition of a meme coin, let alone made an argument for rejecting them as securities. “The guidance offers no clear definition”, said Crenshaw, “from law or even a basic dictionary. It generally describes a meme coin as an asset reflective of online or social trends, of speculative value, that tends to experience high volatility. But these are near universal hallmarks of crypto assets”. The Division of Corporate Finance reasoned that meme coins are mainly driven by speculation, trends, and social media promotion, whereas traditional securities like stocks and bonds are driven by part ownership in a company and income derived from dividends. The division also concerned itself with the criminal element surrounding meme coins, requiring other agencies, rather than the SEC, to monitor such issues. Meme coins are cryptocurrencies created as internet memes or jokes. They are often spread through social media as trends, but they fundamentally hold no real world value. Owners typically buy meme coins for fun or speculation. Advertisement   “In this regard, meme coins are akin to collectibles,” said the SEC division, having “limited or no use or functionality”. “Given the speculative nature of meme coins, they tend to experience significant market price volatility, and often are accompanied by statements regarding their risks and lack of utility, other than for entertainment or other non-functional purposes”. Recent examples of meme coins include $TRUMP…
Filed under: News - @ March 3, 2025 6:22 am